Hardware Connection September/October 2018

Attention to Detail

Orgill Helps You Find Opportunities for Growth

“If I could say one thing to other dealers considering doing business with Orgill, it would be—do it yesterday!”

Brent

Perry l Alf Curtis Home Improvements l An Orgill customer since 2011

Why We Like Working With Orgill: They are a strong business partner. Their fantastic fill rates and comprehensive product selection help us keep products in stock. Orgill is always in full support of our growth.

Click here to see what Brent at Alf Curtis has to say!

Publisher/Principal:

Founder/Principal:

Editor/Founder/Principal:

By Chris Jensen

The Impact of Tariffs Will be Felt by Everyone

If you think the trade war with China has not had much impact on your business yet just hold on, it’s coming. Wholesalers are bracing for a wide range of price increases that vendors say are unavoidable, and those price increases will trickle down to retailers, who will have to pass them on to consumers.

No one wins, at least in the short term. Manufacturers are being forced to evaluate whether they need to shift production out of China, and in some cases, the fine print of the tariffs is penalizing American manufacturers who produce nearly all their goods in the United States.

Some vendors have already started moving their overseas production to countries like Vietnam, which is a costly but necessary move for them.

It’s hard to keep up with all the tit-fortat tariffs flying back and forth between China and the U.S. Anything made with steel and aluminum is obviously in the crosshairs. The latest round shows $200 billion of Chinese imports are subject to 10 percent tariffs as of September 24, and that rises to 25 percent on January 1, 2019.

Randy Noel, chairman of the National Association of Home Builders, issued the following statement in response to the tariff situation:

“President Trump’s decision to impose 10 percent tariffs on $200 billion worth of Chinese imports, including $10 billion of goods used by the residential construction sector, could have major ramifications for the housing industry. With housing costs on the rise, this action translates into a tax increase on housing that will rise even more significantly on Jan. 1 when the tariff rate jumps to 25 percent. Further, this tax increase is coming on top of the current 20 percent tariffs on softwood lumber imports from Canada. The lumber tariffs have already added thousands of dollars to the price of a typical singlefamily home.”

Noel urged the administration to reverse course and resolve the trade dispute in a manner that doesn’t jeopardize American businesses and consumers.

Retailers we have talked to recently don’t seem to fully appreciate the pain that is coming their way. Several said they hope their vendors and wholesalers will be able to absorb some or all of the cost increases on their end—that’s the definition of wishful thinking—and some said they would look to bring in a different product line if a vendor tries to pass on a large price increase.

By Craig Cope

Building Industry Relationships for 30 Years

Dorothy, played by Judy Garland in the film “The Wizard of Oz,” said it best: “There’s no place like home.” This was the sentiment shared by many attendees of the 30th anniversary of The Hardware Conference upon returning to our host property, the newly renovated JW Marriott Marco Island Beach Resort.

The Hardware Conference has always been hosted in Marco Island, Fla., first at the Hilton Beach Resort and Spa until outgrowing the property and moving up the street to the Marriott Marco Island Beach Resort. The only exception occurred last year when Hurricane Irma, which made its second landfall on Marco Island, forced us to reschedule and move to Ponte Vedra Beach, Fla.

The Hardware Conference holds the honor as the oldest consecutive attending group at the resort. This is an honor we will not soon be giving up, as we have signed a three-year extension of our current agreement taking us through 2023 and our special room rate stays below $200. And if you are wondering, yes, last year counts toward our tenure since everything was unpacked and ready to welcome our guests.

This year marks the fourth year since my wife, Shanti, and I began our succession plan of The Hardware Conference from Tom (founder) and Dale Chasteen, a topic I will write about in the future. However, this was the first year our guests had the opportunity to utilize a few of the new amenities associated with the property’s $320 million renovation to become a JW property. Simply put, it’s stunning!

The property now features a third tower (Lanai Tower) with 100,000 square feet of event space, 24-foot ballroom ceilings, five outdoor terraces and full-length windows providing spectacular views of the Gulf of Mexico. The Lanai Tower provides The Hardware Conference the ability to accommodate future growth and create an environment to continue as “The Place Where Relationships are Formed.”

BEACONS OF SUCCESS.

Do it Best Corp. success stories may unfold in different ways, but one thing is constant— the members behind the success are focused on serving their customers, as well as their communities. The 2018 Beacon Award winners are shining examples of the achievement that can be realized when members combine their focus with a strategic partner dedicated to helping them succeed.

For Elliott and Brenda Massey of Agricola Hardware & Lumber, a shuttered lumberyard wasn’t an eyesore, it was an opportunity. They turned that abandoned location into a thriving business, eventually growing it into a comprehensive, modern, one-stop shop for both DIY and pro customers—all because of their

Charlie Gillman likes to say that a life in hardware is what he was born to do. With more than 50 years in the industry, he’s grown Gillman Home Centers from a single location to 10 full-service hardware and lumber stores employing more than 200 people across Indiana and Ohio. Charlie bases his success on the belief that people are as important as product, and invests in developing the next generation of leaders for Gillman Home Centers.

Our congratulations to this year’s Beacon Award honorees. they stand as beacons of our industry.

Call us today at 888-DO IT BEST (364-8237). independentsdoitbest.com

TREND WATCH

During the vendor-only meeting, property General Manager Sharon Lockwood described what’s available for next year’s Hardware Conference attendees. A truly unique feature was the opening of 10K Alley. The resort describes it as “a combination gastropub and state-of-the-art gaming emporium located on the fifth floor of the new Lanai Tower.” Sharon also described the new “adult-exclusive experience” with 93 guest rooms, rooftop pool and private beach. She concluded her presentation by donating a complimentary two-night stay included in Saturday night’s auction benefiting The Nicklaus Children’s Hospital Foundation.

improvement market. An e-commerce sales analytics firm recently published an article estimating Amazon’s total sales in the market at $6.1 billion, up 25 percent year over year. Their report also highlighted topperforming categories: electrical and heating, plumbing fixtures, hardware, hand tools, power tool accessories, and security and safety.

During last year’s Conference we added a new feature to Saturday’s open dialogue session with a panel conversation with the Beacon Award winners. Based upon the positive response received we made the panel conversation a permanent feature and expanded the range of discussion topics. This year’s topics included the current and future impact of the China tariffs on the independent hardware channel, California’s Prop 65 labeling requirements appearing on hardware stores’ retail merchandise and the opportunities business-to-business sales create for retailers.

Sunday’s open dialogue session was focused around a presentation of Amazon’s impact in the tools and home

While Amazon is a threat to independent hardware retailers, attendees shared their strategies of how not only to survive the Amazon threat, but how to capitalize on the opportunities it creates. These strategies included superior customer service, knowledgeable sales staffs and becoming a “destination store.” Attendees also discussed utilizing Amazon’s consumer data as a tool to help identify future growth categories in the hardware channel and adding new products or categories to their current assortment.

Shanti and I are excited for the next 30 years of The Hardware Conference. While change is inevitable, I will guarantee you, the Conference will always remain a first-class informative, interactive, entertaining and family-friendly event for everyone who supports the independent two-step hardware channel.

Mark your calendars now to attend next year’s Hardware Conference, set for August 16-18, 2019. n

HARDWARE HUMOR

“We went shopping for a supplier over 15 years ago because we had mixed experiences with previous suppliers. We liked the fact that House-Hasson was a family-operated business, like us. They are the best supplier we have ever had. They listen to us. Our sales rep works with us at least once a week.” —Todd Eads, Eads Hardware, Paris, KY

YES to lower cost of doing business.

YES to merchandising programs that

YES to unbundled low prices with monthly promotions.

YES to national brands in the warehouse (55,000 SKUs).

YES to 100% cash rebates.

YES to unbeatable Bonus Buy deals at three dealer markets.

YES to smooth conversions to any other system. YES 96% service level.

YES to experienced sales representatives who are focused on relationships and serve as your personal consultant. YES tailored to meet your needs. For more information on how House-Hasson can increase your profits, contact Pat McCutcheon at 800-333-0520, ext. 212 or go to www.househasson.com.

HARDWARE STORIES Amazing but TRUE

Ihad a lady write me a bad check, so I called her and asked her to make it good. She laughed at me on the phone and said, “Good luck getting that back.” Well, I turned it over to the prosecutor and she couldn’t get in here fast enough, and it cost her 10 times the prosecutor fees. I guess I got the last laugh on that one.

David Dillman

Rough River Hardware McDaniels, Ky.

Iget a call from the back service counter that they see some- one in the front of the store stealing candy. That was me.

Robert Archer Morton Lumber Company

Borger, Texas

YAears back, a guy bought a hammer from us and walked down the block and threw it through the plate glass window of a store that he was angry with. What’s amazing is that he paid for the hammer, rather than shoplifted it.

Alan Talman

Karp’s Hardware | East Northport, N.Y.

n employee parked his truck with a jet ski on a trailer in our lot. Some guys in the store got several for sale signs and put them on the jet ski with this employee’s phone number. He got a few calls and wondered why people wanted to buy his jet ski.

Nancy Fisher Allison’s Ace Hardware Lottsburg, Va.

Revitalize Consumer Experiences With a “Connected Retail” Focus

Hardware and home center retail chains have spent millions perfecting methods and technologies that allow them to attract new consumers, operate efficiently, and create a positive shopping experience. Because today’s retail operations are expected to center on the consumer experience, most retailers are leaning on technology, including mobile, to get the job done.

Technology is a driving force behind dramatic changes in the retailerconsumer relationship, but it is far from the only change. To the retailer, cultural shifts may expose a population of consumers with a high degree of price sensitivity and low degree of brand loyalty. This brings in the notion of connected retail—a concept universally embraced across the retail spectrum— but what is it exactly, and how does it apply to the independent hardware and home center retail space?

Today’s customers typically want a seamless shopping experience across all the places they visit—in the aisles, online, on their mobile devices, and on social media. Connected retail does just that—it links the consumer’s shopping experiences to real-time store information, whenever and wherever they shop. Increasingly, independent retailers are investing time and resources

toward connected retail. Here’s one example of how analytics is used to track customer buying behaviors:

At Little Hardware, access to information is a key to delivering exceptional customer service. To provide world-class customer service, a retailer must have detailed product, pricing, sales, inventory, and customer information. “As an independent retail business, understanding our customers is critical,” said Kyle Little, eCommerce and IT manager at Little Hardware. “With analytics embedded within the Epicor® Eagle N Series® solution and readily available at our fingertips, it’s easier to see our customers’ shopping habits, behaviors, and buying patterns.”“A combination of understanding customer information and business analytics creates the ultimate consumer experience and a better retail business.”

Connected retail— getting started

The case study above presented a path to connected retail that uses customer buying behaviors from analytics to improve the customer experience. Each retailer begins a consumer experience improvement process with a goal in mind. Every strategy is built with measurable goals—not just in terms of increased sales. The following are ideas to keep in mind when developing your strategy to become a connected retailer:

Focus on customer shopping behaviors

Include mobile devices in your digital presence—where the vast majority of consumers live, work, and play

Establish an online presence through the social media sites most likely to be used by your customers—make it fun, mix up the content, and get people talking

Set measurable goals—in addition to sales, it’s important to track web traffic and conversion rates

Use a loyalty program to generate consumer engagement by pushing out coupons through Facebook or Twitter and tracking individual consumer behavior

Create buzz—use social, mobile, online, and in-store opportunities to drive more foot traffic

Continually evaluate what your consumers are doing online and how they want to be informed

Epicor is a technology and software solutions partner for more than 20,000 businesses in more than 150 countries.

LOYALTY CLUB

Reasons Why Your Retail Business Needs To Be Mobile

89% of retailers will offer mobile solutions for associates within three years (by 2020)1

84% of retailers will use mobile POS within three years (by 2020)1

1

2

3

Streamline and expedite the checkout process

With a fully functional POS at your fingertips, you can help speed long lines, offer checkout from outdoor sales areas, support special events, and cover any traffic hot spots.

Make faster business decisions while on the move

Monitor alerts on your mobile device and keep your finger on the pulse of your business wherever you go.

Serve customers where they shop

Improve customer service by providing inventory and price checks in the aisles throughout your store.

4 Boost productivity with the right tools

Streamline your receiving process and intuitively manage inventory from anywhere you have connectivity.

Empower staff with data at their fingertips

Arm staff wherever they go with easy access to real-time inventory, customer data, work schedules, and assigned tasks.

6

5 Help informed consumers become customers

Shoppers often research products online before purchasing items in the store, making a mobile strategy critical for retailers.

PRODUCTS REVIEW

From Tom’s Shop HARDWARE

One of the things I enjoyed the most each year as a hardware retailer going to wholesaler shows was the opportunity to see the new products coming out. There seems to be no end to the ways we can develop a “better mouse trap.”

PRODUCT #1: SUREFORCE™ CLAMPS

MAYHEW TOOLS

Mayhew Tools has been in business for 162 years. That’s right, Mayhew Tools was founded in 1856— they are the oldest punch and chisel manufacturer in the United States. The company was founded on quality craftsmanship and has been a major manufacturer in the industrial and automotive industries and is now making inroads into the hardware channel.

This year Mayhew launched two heavy-duty bar clamps in the SureForce™ line. Like all of Mayhew’s tools these clamps are made to hold up under heavy use.

The SureForce Lever bar clamp comes in two length sizes—18” and 24”—and both will accept the optional SureForce magnetic jaw sets, making working with steel products a real pleasure. The SureForce lever clamps

By Tom Chasteen

Not every new product will revolutionize a product category like PVC pipe did or cordless tool technology, and some new products just never catch on. That has always been part of the fun for me, trying to figure out what new products would sell in our hardware store.

all have a 9” lever, enabling the user to really clamp down on the material. Unclamping the material is just as easy with the 9” lever.

The other clamp from Mayhew is the SureForce™ Clamp, which enables the user to tighten the clamp with a heavy-duty metal handle that the user would turn like a big screwdriver. Once the clamp is hand tight on the material, then the user bends over the handle to tighten the clamp even

What you will need: T80 Plus transponder, Ilco EZ®-Clone Plus with M-Box with FREE software update (Version 04.06.091 or higher), Internet connection required; fixed internet connection or hotspot function via smartphone/ tablet. The T80 Plus transponder is compatible with Ilco Look-Alike® key shells, Smart4Car™ keys, original keys and/or GTHT80 Plus modular head

tighter on the material. This is a really nice feature, because it makes taking up the slack in the clamp a breeze and still allows for minor adjustment before the user bends over the handle for extreme force on the material to be clamped.

Our testers were all amazed at how easy both clamps were to work with and the amount of pressure that could be applied to the material being clamped.

The only comment our testers made is about the weight of both clamps. They are heavy, from 6-11 lbs. However, all agreed that these are not hobby bar clamps. They are designed

for heavy-duty jobs that require a lot of force. As one tester said, “You can do things with these bar clamps that you can’t with a lighter weight clamp.”

If you serve an industrial-commercial market, then make sure you take a few minutes at the next show to look at Mayhew’s line of SureForce bar clamps or click on this link.

PRODUCT #2: METAL STAMPING KITS | IMPRESSART

ImpressArt is an interesting company in that they make a full line of stamping products for numbers and letters in various sizes and type styles and they also produce all kinds of items the consumer can stamp. Everything from bracelets, key chains, necklaces, charms, dog tags, leash tags, bottle openers, plant stakes, Christmas tree ornaments and the list goes on.

Numbering and lettering stamps are nothing new for hardware stores to stock, usually in the service department or the key area. However, what ImpressArt has done is create a complete product category with blister packaging designed for retail sales complete with tools that can take stamping to a whole new level.

When I first reviewed the line I was somewhat skeptical. Hardware stores don’t typically have a section dedicated to hobby and craft products, but then I started to think about the possibilities.

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CUSTOMER SUCCESS STORY

MILLER’S ACE HARDWARE

RockSolid MAX™ POS Software for Hardware Stores Keeps

Independents Competitive with the Big Boxes

Ask Kurt Miller about the impact RockSolid MAX™ hardware store software has on his store, Miller’s, an Ace Hardware ® in Pittsburgh, Pennsylvania, and the answer you get might well surprise you.

Kurt is a huge fan or the RockSolid MAX point of sale software but what he has to say about the program’s key benefits has very little to do with any of the technology bells and whistles it might offer. For Kurt, it’s all about the changes it made for him and his people, as they made the transition from pen and paper to the cloud-based ERP solution built specifically for the hardware industry.

Miller’s in an outstanding example of the independently owned and operated hardware store’s continuing ability to compete against the toughest big box competition. The company is more than 130 years old; Kurt represents the fifth generation of the Miller family to work in the store, which today is co-owned by his father, Steve, and uncle, John.

Business has been good for the Millers of late. While there’s The Home Depot®, as well as Lowe’s® and Busy Beaver Building Center® all just a 20-minute drive away, Miller’s has been growing nicely thanks to the support of a loyal customer base that values its “whatever it takes” attitude to service. Also helping to drive top-line sales, Miller’s closest competitor, a local True Value® store, closed its doors two years ago. This makes Miller’s, Kurt claims proudly, the only real hardware store in Pittsburgh today.

But growth is something no business can ever take for granted. Kurt recognized that if Miller’s was to make the most of it’s current opportunities and position itself for

continued prosperity, it was time—indeed, it was long past time—to bid farewell to pen and paper and move management of the company into the 21st century.

MILLER’S ACE CHOSE AFFORDABLE ROCKSOLID MAX POS SOFTWARE

Kurt spent about three months carefully researching the various software options available to Miller’s and one program, he says, came out a clear winner: RockSolid MAX, a POS system for small businesses, from ECi Software Solutions.

The program’s low price was a major factor behind that decision, he says candidly. But that was just one of the reasons for choosing the RockSolid MAX hardware store POS system.

“Our top priorities were point of sale, inventory management and a direct interface with Ace,” Kurt reports. “RockSolid MAX performed great in each of those areas.” Also a big plus, he points out: the program’s cloud-based platform meant Kurt and his team wouldn’t have to worry about maintenance on a store-based server or managing backups.

Even though Kurt himself had no specialized computer training, responsibility for a successful implementation was in his hands. “I knew I had a lot to learn, no just about the program itself but even the basics—how a point of sale system works, and so on,” he recalls.

It was a situation that potentially could have been disastrous. Only it wasn’t. “We got excellent support from RockSolid on the implementation,” he reports. “Our situation was a little different from most of the conversions they worked with since we were automating the business totally from ground zero but they were very willing to accomodate our situation and

adjust to any special requirements we might have. And even after we went live, the implementation specialist we worked with would call me in his free time to see how we were doing and answer any questions I might have. RockSolid MAX provided a level of support that was very much above and beyond what I expected.”

THE HARDWARE-STORE-SPECIFIC SOFTWARE DELIVERED BENEFITS IMMEDIATELY

Once the program was up and running, the benefits started showing up almost immediately.

Switching to new software can be daunting task for just about any business. For the Miller team—which was moving from a manual, paper-based system and had only limited IT resources within the company itself—the stakes were particularly high. But Kurt says, RockSolid MAX has more than lived up to expectations.

than $12 million in annual revenue and they’ve really got it nailed down,” he contends. “If you fall within the parameters of their target group, I have no hesitation about recommeding that you go with them. The software does everything they say it does and the RockSolid MAX technical support and customer service people are great!”

“RockSolid MAX defines its target demographic as smaller hardware stores and retail chains doing less

KURTMILLER smaller hardware stores and retail chains less

“Our whole operation is “OOur becoming simpler and more streamlined with RockSolid MAX. The interface with Ace is seamless and extremelyfast”

extremely fast. — KURT MILLER

RockSolid MAX™ cloud-based software for hardware stores and home centers protects your data from fire, natural disaster, or cyber attacks. With automatic backups to the cloud, you will save time and rest easy knowing that your business information is always safe. YOUR DATA, CONFIDENTLY PROTECTED.

all positive. All of our testers found different ways to use the stamps and the blanks and got really creative with the various stamp styles. All of our testers like the small, well-balanced hammer used to strike the dies.

Bottom line: every one of our testers really enjoyed using the ImpressArt samples and had fun. If you have a large pet department or hobby department you definitely want to take a look at ImpressArt’s stamping kits. If you are looking for special products for the holiday season that are unique, ImpressArt may just be the ticket for your store. Go to this link and click on the “Tutorials” and “Inspiration” tabs. Also, click on this video link to see how clean and easy ImpressArt makes stamping.

"Where Relationships are Formed"

The Hardware Conference Marks

30th

Anniversary

It was a milestone achievement for The Hardware Conference, with attendees on hand to help celebrate 30 years of building relationships in the two-step hardware channel. The 2018 event took place September 7-9 at the newly remodeled JW Marriott Marco Island Beach Resort.

For event founder Tom Chasteen and his wife Dale, this year’s Conference was a chance to accept congratulations on a job well done. Although they passed on ownership of The Hardware Conference to Craig and Shanti Cope four years ago, it was Tom and Dale’s hard work and dedication that kept it going all the previous years.

Melanie and Jason Haley of Ace Hardware of Clarkston talk with Ralph Crommett of TC-11.

Steve Martin of RustOleum (left) talks with Walter Toole of Toole’s Ace Hardware.

Casey Mathews of Wooster Brush chats with Michelle and Jason Fank of Handyman True Value.

Dan Hitchcock of Miami Home Centers (left) with Bill Cassidy of Reliance Water Heaters.

Walter Toole of Toole’s Ace Hardware makes a plaque of life dedication.

Dan Beck of The Hardware Connection (left) with Michael Robbins of Fluidmaster.

The Beacon Awards banquet on Friday evening honored the industry’s best retailers.

As Tom explained, “It seems like just a few years ago that Dan Hitchcock, Bob Goggin, Chris Vanassche, Paul Weintraub and I had this idea that independent hardware retailers would enjoy getting together once each year with our families and selected vendors and wholesalers to share information and ideas on how to make our hardware stores more profitable.”

He added, “For Dale and I, The Hardware Conference was truly a labor of love. The relationships each of us has developed over the past 30 years with manufacturers and wholesalers has been both invaluable and personally rewarding.”

On the last night of the Conference all the vendors auction off their booths and the money raised is donated to the Nicklaus Children’s Hospital Foundation. This year’s auction raised $40,530,

bringing the total fundraising amount over 30 years to more than $1.2 million.

Yesenia Rodriquez of the Nicklaus Children’s Hospital Foundation presented Tom and Dale with a special book of memories to thank them for all they have contributed to the hospital.

“Shanti and I are blessed to have this opportunity to continue the tradition of The Hardware Conference and follow in Tom and Dale’s footsteps. We hope to keep it going strong for the next 30 years, because we believe strongly in an industry event where relationships are formed,” Craig Cope said.

INDUSTRY GATHERING

An all-day Technology Forum was again held on Thursday, the day before the Conference officially opened. Epicor and ECi Software Solutions held indepth training sessions with their retail

Joe Proctor of Proctor Ace with Evan Bedford of Tavernier Ace Hardware.

Jason Haley of Ace Hardware of Clarkston said they empower associates to keep customers satisfied.

The 30th Hardware Conference was held at the recently remodeled JW Marriott Marco Island Beach Resort overlooking the Gulf of Mexico.

Tom and Dale Chasteen (center) have passed on the torch of Conference leadership to Shanti and Craig Cope.

The Hardware Conference lives up to its slogan: Where Relationships Are Formed.”

Craig Cope led the open dialogue sessions on Saturday and Sunday mornings.

BLACK

customers, helping them discover ways to operate more efficiently.

One of the highlights of this year’s Conference was the Friday evening banquet, where seven of the industry’s best retailers were honored during the sixth annual Beacon Awards program. See additional story on page 42.

Leading vendors participate with tabletop booths displaying their latest product innovations. Since the Conference is not a buying show dealers can learn more about the suppliers and their product lines without feeling rushed.

“We enjoyed attending the Conference last year and couldn’t wait to come back again this year,” said Willis Qualheim of Qualheim’s True Value in Wisconsin, who attended with his daughters Karissa and Casey. Last year they attended to watch their family business receive a Beacon Award.

Saturday afternoon was left free so attendees could enjoy fun outdoor activities. Wooster Brush again sponsored “A Day at the Beach” with free beach activities for Conference attendees, while other organized activities included a golf outing,

Everglades airboat excursion and shelling excursion.

Women in Hardware, a group launched by The Hardware Connection five years ago with founding sponsorship support from ECi, held a luncheon meeting on Saturday sponsored by ECi and Ettore Products.

Chris Jensen, editor and principal of The Hardware Connection, gave a presentation that touched on female shopping trends, how to conduct a ladies night event, amazing but true hardware stories and how to develop unique niches.

IMPACT OF TARIFFS

The open dialogue session on Saturday was highlighted by a panel discussion among Beacon Award honorees moderated by Craig Cope. Participating were Ben Smith of Matt’s Building Materials, Jason Fank of Handyman True Value, Craig Loop and Michael Nelson of Parkrose Hardware, Steve Proctor of Proctor Ace and Jason Haley of Ace Hardware of Clarkston. An additional open dialogue session was held Sunday morning.

One of the major topics of discussion was the impact of tariffs with China.

Leigh and Steve Proctor of Proctor Ace, Harley Schreiber of Hy-Ko Products and Yesenia Pastermack of Ace Handiman North.

Yesenia Rodriquez of Nicklaus Children’s Hospital Foundation (right) presents a special book of memories to Tom and Dale Chasteen for their 30 years of dedicated support to the hospital.

Mark Madden of Madden’s Ace Hardware thanks Tom and Dale Chasteen for all their years of friendship.

“There are over 1,300 different product categories coming from China that are targeted by the tariffs,” said Cope. “So far there is a ton of confusion, but price increases are inevitable.”

Price increases from suppliers will be passed on to consumers, said Proctor. “When a price change comes through on a category we implement it as soon as it comes

in,” he said. “With today’s technology you can check prices online. Just punch in a barcode and it shows everybody’s price.”

“It looks bad if we start doing big increases, so we would start looking at different vendor lines if necessary,” said Haley. “Grills will be interesting, because so much is coming out of China.”

A panel discussion featured this year’s Beacon Award winners (from l to r): Ben Smith, Jason Fank, Michael Nelson, Craig Loop, Jason Haley and Steve Proctor, with moderator Craig Cope.

George Ronnestrand of Jack Link’s with Bill and Sandy Parks of Williamson-Dickie.

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“We try to pass on price increases right away,” said Nelson. “Our customers realize we’re never the cheapest option. We shop the boxes so we’re not stupid with our prices.”

Added Loop, “We have a $5 lifeboat so employees can make a decision to save a sale and match a price without management approval.”

“We do a lot of commodity business, so we stay on top of prices. We also do a lot of advertising, so we have to be competitively priced,” said Smith.

Vendors and wholesalers in attendance said they anticipate price increases between 10 percent and 30 percent coming soon, especially anything made with steel or aluminum.

“We manufacture over 98 percent of our products in Ohio, but we do source some raw materials overseas such as some bristle from China and steel for metal ferrules,” said Casey Mathews of Wooster Brush Company. “Our

Corey Talbot of Hyde Tools with his wife Donna.

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cost for these components is going up 10 to 25 percent, but there would be no tariffs if finished goods were made totally overseas. We’re being penalized to be almost entirely made in the U.S.”

Ryan Walker of Apex Tool Group said the current tariffs affect their products such as ratchets, ratchet adapters

and socket extensions. “These products are all subject to tariffs of 25 percent. Now it looks like they’re likely to pass new tariffs in October of 10 to 25 percent, which will impact all tools from China,” he said. “Retailers should get ahead of it now with orders from their wholesaler.”

Tom and Dale Chasteen with Bob Lueders of Sunnyside.

Jeff Kistler (left) and Steve Martin (right) of Rust-Oleum with Donna and Charlie Gillman of Gillman Home Centers.

Bob Clemence of Hyde Tools said they have seen a 25 percent tariff added as a line item for food processing items. “On the tool side I can’t do it that way, so I have to build tariffs into my price. We’re working on a 10 to 25 percent duty on finished goods from China that goes into effect in October. There’s no more money to absorb—we have to pass that increase on to customers.”

Travis Petty of Sol Hats said a lot of tariffs are still unknown. “Some companies are doing a line item tariff charge and some are raising the price of their whole line,” he said.

Steve Martin of Rust-Oleum said it is easier to implement a surcharge across the board with their product line, like many have done with fuel surcharges when gas prices were skyrocketing, rather than just adopt a flat price increase.

Bill Cassidy of A.O. Smith-Reliance

Water Heaters said the 25 percent tariff on steel coming from China raises the import price, which drives up the U.S. demand and price for steel. “We

were paying $750 a ton a year ago for cold rolled steel and now it’s up to $1,150 a ton. This resulted in a 12 percent increase in water heater pricing,” he said. “We don’t use import steel, but it has still impacted our cost and our prices.”

Cassidy added, “If we build in the U.S. and ship to Canada it’s subject to a 10 percent tariff, so we had to shift production to Mexico for our Canadian customers.”

COMPETING WITH AMAZON

Cope did a presentation on Amazon’s impact on the hardware and home improvement segment. He shared numbers that show Amazon sold an estimated $6.1 billion in tools and home improvement products in 2017, a figure that is growing at an annual clip of 25 percent, according to Clavis Insights/Oneclickretail.

“The biggest asset Amazon has is knowing all the shopping habits of consumers,” he said. “They just made a billion-dollar purchase to become more dominant in the safety and security category.”

Willis Qualheim of Qualheim True Value with daughters Casey (right) and Karissa.

Catherine and Glenn Otto of Handyman True Value talk with Steve Hildebrandt of Ettore Products.

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The same passion that drove the captain to spend his next few years creating the world’s first rust-Preventative paint still drives us today. When we see a problem, we work diligently until we’ve perfected a solution-which has led to some of the most cutting-edge, durable and innovative products in the industry.

If you’ve got a surface you need to protect or a look you want to transform, you’ve come to the right place. We have a coating for every challenge. Rust-Oleum, home of trusted quality and powerful solutions since 1921.

RUST-OLEUM — A PROUD SPONSOR OF THE

2018 BEACON AWARDS

IF YOU THINK WE’RE JUST PAINT, THINK AGAIN.

Krud Kutter has earned the trust of millions of homeowners through 30 years of consistently providing eco-friendly solutions for tough tasks. The brand has a continuous commitment toward providing effective cleaning solutions that are safe for the environment and families.

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Competing with Amazon is becoming more of a challenge each day, according to retail attendees. “These items are easily identified,” said Dan Hitchcock of Miami Home Centers. “Consumers can use our store as a showroom. They get a barcode and then go online and buy from Amazon.”

“We can play in this arena,” said Haley of Ace Hardware of Clarkston.

“I’m getting ship-to-store and we’ve got to ramp up quickly for those online orders. Then you have an opportunity to engage them when they come into the store to pick up the item.”

Haley pointed out that retailers can go online and see Amazon’s market research to see what’s selling in their area. “You can find out the top trending items on Amazon for the week and

A shelling excursion was one of the planned fun activities.

The 30th anniversary of The Hardware Conference marked the first time in the new ballroom of the JW Marriott Marco Island.

Attendees of all ages enjoyed etching glasses at the

make sure you have those items in stock for the holiday,” he said.

“We can’t match Amazon or eBay,” Loop said. “It’s a defining moment for our business and we have to draw the line or customers would continue to take advantage of us. Most people don’t come in expecting a deal.”

THANKS TO SPONSORS

Special thanks go to the marquee sponsors: The Hardware Connection magazine, The Hillman Group, Nicklaus Children’s Hospital Foundation, Hyde Tools and The Wooster Brush Company.

The wholesale community also lends important support to the Conference each year, with representatives from Ace Hardware, Orgill, True Value and Do it Best in attendance and conducting meetings with their members.

Start making plans to attend next year’s Hardware Conference, scheduled for August 16-18, 2019, at the JW Marriott Marco Island Resort. For more information, call Craig or Shanti Cope at (305) 853-0049 or go to www.thehardwareconference.com. n

Dremel-Bosch booth.

Retailers, vendors and wholesalers have plenty of chances to mingle, network and share ideas.

Chris Jensen of The Hardware Connection with Dave and Barb Umber of Umber’s Do it Best Hardware.

The Hardware Conference has been held in Marco Island, Fla., since 1988.

Ryan Walker of Apex Tool Group describes the impact of tariffs with China.

COMPANY PROFILE APEX

TOOL GROUP IS A PROUD SPONSOR OF THE 2018 BEACON AWARDS

Apex Tool Group (ATG) is one of the largest manufacturers of professional hand and power tools in the world, serving the industrial, vehicle service and assembly, aerospace, electronics, construction, and serious DIY markets. Our portfolio of over 30 innovative brands includes many category leaders, such as Crescent®, Lufkin®, and Weller®. ATG also manufactures select, premier private label mechanics tools. Across the board, our tools embody quality, innovation, and value. Known for solving seemingly impossible problems, they are intuitive and simple to use, yet indispensable. ATG works collaboratively with independent hardware/home improvement retailers in the two-step channel to make sure end users have the tools they need to solve real-world problems.

Current examples of ATG new product innovation include its Lufkin® Black Widow™ Tape Measure, improved Crescent® Mechanics Tool Sets, awardwinning Crescent® Locking Pliers, Crescent® Flex Head Hammer, and Weller® 9400PKS Soldering Gun.

The Lufkin® Black Widow™ Tape Measure features a matte black blade with high contrast green markings for improved legibility in varied light conditions. The two sided blade has vertical marks on the back for faster, more convenient measuring. The tape provides ten feet of standout for greater versatility and is housed in an extremely compact case that makes it easier to hold and carry.

Five new Crescent® Mechanics Tool Sets feature a number of improvements for better performance and extra durability. Available in 30, 70, 128,

148, and 170-piece versions, the new Crescent® Mechanics Tool Sets feature acetate screwdrivers and have longer wrenches with narrower heads for better leverage and access. Ratchets also deliver improved access and leverage with smaller teardrop heads and 10% longer beams.

The newly redesigned line of Crescent® Locking Pliers features a cushioned release lever for optimal comfort and two improvements to the jaw adjuster knob: A deep-rib knurl pattern makes it easier to grip and turn by hand and a hex key recess in the end of the knob allows a hex key to be used to tighten or loosen the jaw. The Crescent® Locking Pliers were named the 2017 Gold Award Winner in the Locking Pliers Category by Home Improvement Executive.

The Crescent® 18 oz. Steel Indexing Claw Hammer with Cushion Grip Handle has a 4 position claw that adjusts so users

can always get the best angle for maximum access and leverage when prying boards or pulling nails. Its extra-large smooth striking face provides solid contact when driving nails and a magnetic nail starter holds nails securely under the hammer head for quick and easy onehand nail starting.

Solder. Cut. Smooth. Weller’s new 9400PKS soldering gun features 3 cool LEDs that illuminate work without tip shadow and an ergonomically designed, contoured grip with balanced housing to reduce hand fatigue. A pivoting ball cord guard prevents twisting and extends the life of the cord. The 9400PKS features a two position trigger with dual power levels – high (140 watt) and medium (100 watt) – and heats up in 6 seconds. The gun comes with a 7 year warranty.

BEACON AWARDS

The honorees and sponsors of the 2018 Beacon Awards.

Beacon Awards Program Honors ‘The Best of the

John Hammond and Chris Jensen of The Hardware Connection served as presenters for the awards banquet.

S even hardware retailers were honored as Beacon Award winners during a special awards banquet held during The Hardware Conference on September 7 at the JW Marriott in Marco Island, Fla.

Gillman

Left Middle: Bottom row l to r: Tom Parman, Ace Hardware Corp.; Joe Proctor, Tommy Proctor, Leigh Proctor and Steve Proctor, Proctor Ace Hardware. Top row l to r: Jeff Murray, Ace Hardware Corp.; Melanie and Jason Haley, Ace Hardware of Clarkston; Dave Atkins and Jerry McGowan, Ace Hardware Corp.

Bottom: From l to r: Charlie and Donna Gillman, Gillman Home Centers; Jason Hipskind, Do it Best Corp.; Ashlyn and Elliott Massey, Agricola Hardware & Lumber.

Michael Nelson of

The Beacon Awards, now in their sixth year, are a premier national industry awards program developed by The Hardware Connection magazine and The Hardware Conference to recognize the “best of the best” independent hardware/ home improvement retailers.

The 2018 Beacon Awards are sponsored by Apex Tool Group, Epicor Software Corporation, Rust-Oleum and Sunnyside Corporation, with wholesaler sponsorship support from Ace Hardware Corp., Do it Best Corp., Orgill Inc. and True Value Company.

The Beacon Awards honored the Retail Beacon Award winners for each of the four participating wholesalers, plus the

Parkrose Hardware.

Charlie

of Gillman Home Centers.

BEACON AWARDS

From l to r: John Sieggreen, Central Network Retail Group; Michael Nelson and Craig Loop, Parkrose Hardware; Myron Boswell, Orgill Inc.; Ramiro Armijo and Ben Smith, Matt’s Building Materials; Juan Pacheco, Orgill Inc.

Best New Stores in two categories: under 20,000 square feet and over 20,000 square feet.

“This year’s Beacon Award winners are an outstanding group of retailers. They all share similar traits of operating well-merchandised stores with unique niches and strong community involvement,” stated Chris Jensen, editor/founder/principal of The Hardware Connection, the hardware industry’s leading digital publication. The 2018 Beacon Award honorees include:

Best New Store, Under 20,000 sq. ft.—Agricola Hardware & Lumber, Lucedale, Miss., owned by Brenda and Elliott Massey.

Best New Store, Under 20,000 sq. ft.—Ace Hardware of Clarkston, Clarkston, Mich., owned by Jason and Melanie Haley.

Upper: From l to r: Tim Hanna, True Value Company; Dave Otto, Mary Otto, Michelle Fank, Jason Fank, Glenn Otto and Catherine Otto, Handyman True Value Hardware.

Lower: Jeff Kistler of Rust-Oleum Corp. (left) with Chris Jensen.

Best New Store, Over 20,000 sq. ft. —Parkrose Hardware, Vancouver, Wash., owned by Central Network Retail Group.

Brand Manager: Michael Nelson. Store Manager: Craig Loop. Retail Beacon Award—Matt’s Building Materials, San Benito,

BEACON AWARDS

Texas, owned by Danny, Diana, Ben, Isaac and Jeremy Smith.

Retail Beacon Award—Gillman

Home Centers, Batesville, Ind., owned by Charlie Gillman.

Retail Beacon Award—Proctor

Ace Hardware, Neptune Beach, Fla., owned by Joe, Steve and Lizz Proctor.

Retail Beacon Award—Handyman

True Value Hardware, Florissant, Mo., owned by Glenn and Dave Otto.

John Hammond of The Hardware Connection , who joined Jensen onstage as a presenter, said the Beacon Award winners demonstrate that independent retailers are alive and thriving despite years of doom and gloom predictions. “There’s no substitute for a well-run, independently operated hardware business, and this year’s Beacon winners have all shown how to develop terrifi c stores that are closely connected with their communities,” Hammond said.

All Beacon winners received a trophy and free travel and registration for two to attend The Hardware Conference. The 2018 Beacon Award honorees are all profiled with feature articles in this issue, beginning on page 48.

Bob Lueders of Sunnyside Corporation (left) with Chris Jensen.

Ryan Walker of Apex Tool Group (left) with Chris Jensen.

Royce Christopher of Epicor (left) with Chris Jensen.

Jason Haley of Ace Hardware of Clarkston.

Sponsors:

Co-Sponsors:

Thank You to the Beacon Awards Sponsors

The Beacon Awards program is an annual event honoring the best retailers in the industry. They are made possible by the generous support of sponsors who recognize the importance of honoring those retailers who represent the future of the two-step channel.

This year’s Beacon Awards were sponsored by Apex Tool Group, Epicor, Rust-Oleum, Sunnyside Corporation, The Hardware Conference and The Hardware Connection magazine. They were also co-sponsored by Ace Hardware Corp., Do it Best Corp., Orgill Inc. and True Value Company.

Best New Store Under 20,000

JASON AND MELANIE HALEY

Ace Hardware of Clarkston Clarkston, Mich. sq. ft.

Jason and Melanie Haley have revitalized a former distressed hardware store in their hometown, completely revamping everything to develop Ace Hardware of Clarkston.

took an abandoned hardware store site and transformed it into a thriving 13,500-square-foot hardware store in their hometown of Clarkston, Mich. Opening in October 2016, Ace Hardware of Clarkston finished the first year at 167 percent of its Ace sales forecast and sales were up 29 percent for the first half of year two.

Click to Watch Ace Hardware of Clarkston’s Beacon Award Presentation Video

The Haleys made major capital investments in the facility including a new entrance, new checkouts, extended fixtures, barnwood accents on the walls, partially polished concrete floor, completely new restrooms and new LED lights.

They lit the store brightly and made the aisles a little wider and raised the perimeter racking to 12 feet to demonstrate their substantial depth of inventory.

“We deliberately changed the layout and put tall fixtures on the wall and filled them with inventory, we changed the doors, we changed the uniforms and we screamed from the rooftop that we are new, local owners—your neighbors,” says Jason. “We had to convince the community of three things: we have plenty of inventory, we are local and care, and that this is truly a rebirth of an icon. It worked.”

The top categories are niches such as gift and home decor, chalk and decorative painting, fasteners and grills. Melanie’s instincts in the gift area led to over $100,000 in sales the first year.

“I started small and we’re adding all the time. I shopped local to see what’s out there and went in a different direction, buying from over 50 vendors,” she says, adding that they plan to

Upper Left: The 13,500-square-foot sales floor was completely remodeled with a new entrance, new checkouts, extended fixtures, barnwood accents on the walls and new LED lights.

Lower Left: Ace Hardware of Clarkston’s staff works under a culture of teaching one another.

Right: Grilling has exploded into a year-round category.

expand the gift and home area in the near future.

“We have a one plus one equals five theory in our business,” Jason says. “We have an amazing gift and home decor area, we have a killer grill and outdoor niche, we have the largest fastener selection in the area and we are experts in chalk and decorative painting.”

He adds, “We think, like a recipe, that it is a combination of these special offerings that create a destination and image that is much greater than just adding up the individual parts.”

Grilling has exploded into a yearround category that ranks second among all categories, with year-todate sales up 99 percent. “We will sell, assemble and deliver over 350 large grills this year. It does not go unnoticed

that it’s usually the owner and his sons delivering their grill, and you learn a lot about a customer when you sell and deliver a grill,” Jason says.

NEIGHBORS SERVING NEIGHBORS

Melanie is an Air Force veteran who had been a stay-at-home mom, and it was her idea to come up with the “Neighbors Serving Neighbors” slogan that has resonated so well with their customer base. “People are craving locally owned businesses,” Melanie points out.

“Neighbors Serving Neighbors goes big and small—from raising cash and donating our own for the family of a sheriff’s deputy who was killed this past fall in the line of duty to going to an elderly customer’s house and covering her patio furniture because her husband is no longer able,” explains Jason.

The Haleys say they are focused on working less in the business and more in the community. They have a community room for workshops, but it’s been turned into a gift stock room. “What makes us unique is we’re available and we’re here all the time. We both have a spirit for helping,” says Melanie.

Adds Jason, “We are the only locally owned hardware option in our market, so we can be

Top: To convince the community to support the new store, the Haleys made sure the shelves were filled with lots of inventory.

Upper Middle: The gift area turned into a $100,000 department the first year.

Lower Middle: Associates are taught from day one that their job is to do whatever it takes to satisfy each customer.

Bottom: Jason and Melanie Haley work in the store nearly every day, setting an example for how customers should be treated..

very flexible in what we sell, how we staff, what we do for the community and in the services we provide. The community shapes our store and makes it their store.”

Offering excellent customer service is one of their most important goals. “We empower our team to do whatever it takes to satisfy a neighbor,” Melanie says. “All our employees know if they’re not with a customer they should be greeting customers as they come in.”

The store’s team ranges in age from 15 to nearly 80, and the Haleys have created a culture of teaching one another through shadowing. As Jason points out, “Our rule is simple: if you cannot help a customer, then you get someone who can and then shadow them to learn one on one from another experienced associate.”

Associates are empowered to do whatever it takes to satisfy a neighbor. For example, if a customer is buying a large fire ring and realizes it won’t fit in their car, employees know it’s OK to just take it to the customer’s home.

Jason adds, “As owners we work in the store nearly every day. We have radios on, are often out on the floor setting the example of how we treat our neighbors and we coach our team continuously.”

BUILDING ON THE ACE BRAND

The Haleys’ viewpoint is that Ace provides the branding and marketing to get folks in the door and it is their job to give them an amazing experience and keep them coming back.

A new van for grill deliveries helps promote the store as the neighborhood grill center.

“We have no doubt that the Ace brand has been critical to our success,” says Jason. “The best brands approach from Ace has set us apart, as it not only draws traffic but has a halo effect of quality around everything else.”

He adds, “Ace has some great tools from training and scheduling to merchandise reset programs that make it easier to let them do the heavy lifting and we just execute. Our goal is to make our customers raving Ace fans and keep them coming back instead of going to the boxes.”

Social media has been a key tool to promote their new store. “Anytime you can interject quirky and fun people respond to it,” says Melanie, who notes that their Halloween pet costume on Facebook went viral with more than 50,000 hits.

Winning the Beacon Award is a great honor, according to Jason. “We subscribe to the theory that ‘iron sharpens iron.’ The more we push each other in this industry, we all get better and we all win,” he says.

Best New Store

Under 20,000

Brenda Massey and her son

Elliott Massey celebrated the opening of a new, much larger Agricola Hardware & Lumber in Lucedale, Miss., in

Agricola Hardware & Lumber Lucedale, Miss.

Elliott and Brenda Massey nearly tripled the size of their retail space when they opened a new Agricola Hardware & Lumber store in Lucedale, Miss., in 2016.

Their retail journey began in 1999, when the family purchased a rundown hardware and LBM store in Lucedale that had recently closed. “I was very adventurous when it came to business. I sold carpet, had a clothing store, mini storage units and 15 rental

houses,” explains Brenda. “But when I opened up the doors to the hardware store by myself I thought, ‘What have I gotten myself into?’ It was rough in the beginning.”

She adds, “We had an old loader and an old beat-up truck. We would put a load of blocks on the truck and then close the store to make a delivery, with the loader following the truck down the road. Every day it got better.”

Elliott left college in 2001 and got involved to help his mother run the business. “I had to learn the hard way. I didn’t know anything about hardware. And while I loved woodworking, I didn’t know lumber species,” he points out.

The two worked hard to revitalize the business but were held back by a 5,000-square-foot sales floor. “We just couldn’t grow at the old location. You are so limited on what you can carry with 5,000 square feet,” says Elliott.

A NEW BEGINNING

Do it Best Corp. has played an integral role in improving their business through the years and getting the new store up and running, according to the

The staff at Agricola Hardware & Lumber is focused on providing personalized, exceptional service.

Top Right: Elliott Massey has been overwhelmed by the level of support the community has shown for the new Do it Best store.

Lower Right: Store planners from Do it Best Corp. helped the Masseys plan the design and layout for the new store as well as an expanded merchandise mix.

Masseys. “They are very hands on and they have a big interest in the success of your store,” says Brenda.

She adds, “Our Do it Best territory manager had been on us for 10 years to build a bigger store. I would say, ‘I’m getting older and I just don’t want to deal with all that.’ Now I have to say building

Left:

the new store is the best thing I’ve ever done. If I had to do over, I would’ve done it 10 years ago.”

Working with store planners from Do it Best Corp., the Masseys ended up with a new 14,000-square-foot showroom that enabled them to expand existing core categories and introduce new ones like lawn and garden, farm and ranch, outdoor power equipment, flooring, appliances and paint.

Being able to provide a significantly better merchandise mix and depth of selection was only part of the equation for the Masseys. What they were particularly mindful of throughout the design and development process was not sacrificing the personal and unique experience each of their customers knew and loved about the business.

The design and layout of the new store and lumberyard reflect the Masseys’ desire to continue providing their “commitment to put service first.” The plan and execution were on target, as sales increased nearly 20 percent in 2017 in their first full year in the new location and were continuing to expand rapidly throughout 2018.

“We’ve gone way over our projections. It’s so amazing. We hit our

Left: The boutique section near the front attracts women shoppers.

Middle: The store adopted The Color Bar, Do it Best’s new paint program.

Right: Tools and other core categories were all greatly expanded with the extra space.

five-year projection in the first year,” says Brenda. “Now having a second location is a goal, and I’d like to have another building for an onsite millwork and door shop.”

Adds Elliott, “We have basically doubled our customer count and sales. Our margins are slightly less, but that was purposeful to set a price image. We’ll start to raise those in another year or two.”

Plumbing, paint and electrical are the top-selling categories, along with LBM. The sales mix used to be 65 percent pro and now it’s 60 percent DIY and 40 percent pro.

“We’re set up more to appeal to homeowners now with doors, windows and appliances, but we also are attracting more pro customers with

extra selection of long-length lumber that no one else has within 30 miles,” says Elliott.

He adds, “We try to do what we tell folks we’ll do. If I promise a delivery to a pro customer, then we have to follow through. We hire people for the sales floor who have outgoing personalities, so they feel at ease with customers.”

COMMUNITY SHOWS SUPPORT

About 1,200 people showed up for Agricola Hardware & Lumber’s grand opening on June 10, 2017, not bad for a town of 2,900. The grand prize giveaway was a zero-turn mower.

“Everybody in the community is overwhelmed and appreciative the new store is here. Now they don’t have to go outside the county to get what they need. We’re pulling lots of customers from adjoining counties,” says Elliott, who notes their location has a lot to do with their success. The store is located on the main highway that runs through town, with the nearest big box 45 minute away.

The Masseys stay involved in the community any way they can. They take the popcorn machine to the school and church for events and they do the cooking for teacher appreciation day. “We’re here to serve the community and let people know we care,” says Elliott.

Elliott and his wife Ashlyn have two kids—Karlyn and Mason—and the

Taking care of customers is everybody’s number one job each day, and customer counts are way up in the new store.

The store now attracts significantly more pro customers with an expanded selection of lumber and LBM products.

youngest, five-year-old Mason, has already become obsessed with working in the store. Mason will take customers to where products are in the store and he has a sharp word for his dad if something gets moved without him knowing about it. “Mason is definitely going to be the next generation running the business,” Elliott proudly notes.

“It is quite an honor to receive the Beacon Award, and we are proud of what we have been able to do with this store,” says Elliott. “We will keep looking for ways to get better and improve the business.”

Best New Store Over

Parkrose Hardware

20,000

Vancouver, Wash.

The staff at Parkrose Hardware, known collectively as the Hazel Nuts, delivers exceptional customer service that stands out.

Click to Watch Parkrose Hardware’s Beacon Award Presentation Video

Sometimes you end up hitting a home run when you are just trying to get a hit. That is the case with Parkrose Hardware’s new store in Vancouver, Wash. Parkrose’s fourth store opened in March 2017 and has been exceeding expectations ever since.

Parkrose Hardware, one of the retail brands that comprise Central Network Retail Group (CNRG), was a familyowned business in Portland, Ore., that dates back to 1968. CNRG acquired what was then a successful two-store company in 2014. “Parkrose was a great opportunity to be in an important market.

The Parkrose brand meant something in the marketplace and had great potential,” explains John Sieggreen, CNRG president.

The 35,000-square-foot store in the Hazel Dell area was a former office building that was extensively upgraded into a Sports Authority store in late 2015. A year later, Sports Authority closed and Parkrose jumped at the opportunity to expand into a prime location, doing their own remodel to modernize the facility and make it customer-friendly.

Brand Manager Michael Nelson and Store Manager Craig Loop were tasked

with getting the new store ready, with help from their primary wholesaler, Orgill Inc. “Orgill has played a huge role in helping us develop assortment plans along with all the services they provide such as special end caps and pallet buys to create ads to drive foot traffic,” says Loop.

Adds Nelson, “We mirrored our assortments in our other stores as much as possible. Each store has a different emphasis, but this store has a big emphasis on fasteners, paint, STIHL power equipment, lawn and garden, Carhartt and grills. Lawn and garden has really exceeded our expectations.”

Name-brand products are prominently featured throughout the store. “At the end of the power aisle tools are showcased so that they are visible on the back wall. There’s an easy flow to the store layout and it’s an easy, shoppable experience for customers,” Loop says.

Several changes have been made since the store opened, in response to customer demand. “Lawn and garden

Left: John Sieggreen, president of Central Network Retail Group (left), is proud of the job done by Brand Manager Michael Nelson (center) and Store Manager Craig Loop (right) to get the new store up and running.

Upper Right: A dominant selection of Stihl outdoor power equipment showcases Parkrose Hardware’s focus on premium brands.

Lower Right: Rental is a category that continues to experience strong growth, exceeding budget forecasts.

was greatly expanded and rental and services are more prominent,” says Sieggreen. The original nursery is now dedicated to just green goods and the hardscapes area has been expanded.

The other Parkrose stores range in size from 15,700 square feet (Vancouver Heights) to 47,700 square feet (Portland). “This is the second Parkrose store we’ve opened with CNRG,” Sieggreen points out. “We’ve thought about how the Parkrose model would translate to a smaller footprint, but we realized it would be a little tight and might not be as visually

appealing in how you present categories like fasteners.”

CNRG set an aggressive budget when it opened this store, but the results so far have greatly exceeded expectations. “So far this year we’re 25 percent above last year’s sales, which were double what we expected,” Nelson says. “Customer counts are up 23 percent over last year after a strong first year. The store is exceeding almost every metric.”

The Hazel Dell store is not only the crown jewel of the Parkrose brand, it is the most successful new store CNRG has opened in its seven-plus years of operation.

DRIVEN BY SERVICE

Well-merchandised aisles and creative end caps help drive sales, but Nelson and Loop agree that the new store’s success has been driven by its team of dedicated associates.

Loop put together a training program, then put on a job fair and hand selected staff to do the store set-up process, which helped the new hires learn a lot about the product mix.

Left: The 35,000-square-foot store is designed with a large power aisle lined by well-stocked end caps on both sides.

Right: Lawn and garden has been greatly expanded to sell more green goods.

“There’s a high cost for labor in this market, so we had to double down on training and invest a lot more time in it,” Nelson says.

“We had a mass orientation session to communicate my vision of service. The staff became known as the Hazel Nuts and we did a morning rah-rah huddle to start the day and promote a sense of ownership,” Loop says. “We have a commitment to a fun environment and the daily satisfaction of helping customers solve problems.”

He adds, “How tight your team is determines how successful you are. Associates enjoy coming to work and no one here is unimportant. We have an amazing team of employees.”

Sieggreen says, “We can think we’re pretty smart with real estate, but having the right group of people is key. The quality of our team and the plan Michael, Craig and Dan West

put together has been very integral to our success.”

GOING OUTSIDE FOR SALES

Niches are an important ingredient to retail success, and Sieggreen has been pleasantly surprised that rental has turned into much more than an add-on, attracting both pros and homeowners.

“Our rental is a full department,” Nelson points out. “I knew there was a real need for it, and it has exceeded our budget forecast and goals. We need to find even more room for it. We rent small backhoes, but most is to mom and pop homeowners.”

Parkrose has grown rental substantially across the company the past four years, giving customers what they are asking for. “Customers can navigate on the rental tab on our website to see rates and equipment availability,” Loop says.

Another bright area for revenue growth is B2B sales, with five outside salespeople out pounding the pavement.

“When we put together the outside sales program, we attracted light industrial near the river. We noticed if we gave them special attention we

Left: Workwear clothing has turned into a nice niche category.

Right: Parkrose Hardware is known for its huge fasteners section.

could get more of their business,”

Nelson says. “We started with one outside sales person and then moved quickly to four. Light manufacturing and MRO constitute a multi-milliondollar business for us.”

Future growth will likely come from opening additional stores. “We are aggressively looking for new locations,” Nelson says. “We’re developing people so they are ready to take on the next stores.”

A TEAM AWARD

“For CNRG, being honored with the Beacon Award for Best New Store validates the whole process of trying to acquire and grow successful retail brands,” says Sieggreen.

Nelson notes that the whole company takes pride in the Hazel Dell store being honored. “It was a combination of everyone’s hard work,” he says.

Adds Loop, “It’s a huge honor for the team and we’re very proud of our entire team.”

Retail Beacon Award

Proctor Ace Hardware Jacksonville, Fla.

Click to Watch Proctor Ace Hardware’s Beacon Award Presentation Video

The Proctor family members involved in the business include (l to r): Tommy, Steve, Joey, Lizz and Joe Proctor.

In 1945, Ethan Proctor sold a farm and general store in Georgia and bought Dickinson Hardware in Jacksonsville Beach, Fla., which dated back to 1936. Affiliated with Ace since 1964 as the first Ace store in Florida, Proctor Ace Hardware has grown to three locations in the Jacksonville area under the current leadership of brothers Steve and Joe Proctor and Lizz Proctor.

Tommy and Joey Proctor represent the fourth generation of the family involved in the business, which is enjoying a yearto-date sales increase of 12.3 percent.

The Proctors are progressive and aggressive retailers, constantly

remerchandising and changing their stores to meet the needs of their customers and to stay ahead of retail trends. The Neptune Beach location was honored by Ace Hardware with a 2018 Coolest Hardware Store award during the Ace Pinnacle Conference in Las Vegas.

The Neptune Beach location moved to its fifth location in 2015 with a 23,600-squarefoot ground-up store plus a 4,700-squarefoot garden center. Sales have increased over 20 percent each year since.

The Jacksonville store, which opened in 1975, is known for its large garden center staffed by knowledgeable associates. The Proctors did a complete interior

remodel of this location in 2017, leading to a sales increase of over 20 percent.

The third location in Ponte Vedra opened in 1990 and moved to its current, larger location in 1999. It was the first location to add a Floral Emporium Florist to the hardware mix. This store recently underwent major interior and exterior projects and 2017 marked the third straight year of double-digit sales increases.

In explaining what makes their stores unique, Steve says, “We customize assortments to the local community, offer outstanding customer service that can’t be beat and feature premium brands in every department that customers can’t get anywhere else.”

The localized product mix includes custom made signs and beachy products, coastal decor, import pottery, skateboards, hot sauces, coastal doormats, Simply Southern and Guy Harvey clothing, fishing knives and patio furniture.

The most important niche is plants, because everyone who buys plants also buys garden tools, soil, planters, gloves and other items. “The boxes concentrate on price, so we concentrate on quality,” says Steve.

Other major niches include STIHL outdoor power equipment, YETI, Weber and Big Green Egg grills, fishing and

location moved to its fifth location in 2015 with a 23,600-squarefoot ground-up store plus a 4,700-square-foot garden center.

Upper Right: The Proctor family was honored by Ace Hardware with a 2018 Coolest Hardware Store award during the Ace Pinnacle Conference in Las Vegas.

Lower Right: Neptune Beach features a 4,700-square-foot garden center that has helped drive sales increases over 20 percent the past three years..

boating department, giftware and outdoor coastal furniture.

The large garden centers are converted into a Winter Wonderland for Christmas goods. A thousand live Christmas trees are sold yearly at the large Christmas tree lot.

They changed the traffic flow at checkout with a next-in-line system with five checkout stations and a wellstocked impulse area that engages people and has led to a significant increase in impulse sales.

Left: The Neptune Beach

The Proctors believe in constantly remerchandising and changing their stores to keep things fresh and inviting for customers.

The Proctors know the value of training and utilize all Ace tools available, including the Ace Learning Place, EMS management classes and outside vendor training for their unique product lines. They have a training coordinator and maintain training logs at each store. Monthly mystery shops and customer engagement surveys are fully utilized and monitored to ensure the stores maintain a Pinnacle level of achievement. All managers and associates are eligible for significant bonuses, but only if their store achieves platinum level with Ace.

The Proctors are active members of the community where they live and work, sponsoring everything from Habitat for Humanity and Community Garden to Beach Bike Rack project and the Rotary U.S. Flag project. They cook

on demo grills every weekend to further engage their customer base.

“We sponsor events all the time,” Steve says. “We’ll let a group have a car wash and let kids earn money while encouraging people to come to our store. We had a project to do a community garden and got a vendor to pay for the irrigation system and got a local contractor to install it for free.”

The Proctor family has always operated with a simple premise: stock everything and have enough inventory of everything. They also offer services that can’t be found elsewhere, like rescreening, rekeying locks, spooling fishing reels and cutting anything by the piece. As Steve says, “Customers know if anything is broken, we will fix it or tell them it’s not fixable. And we don’t make them wait.”

“Ace has been a great partner,” says Steve. “They give us merchandising, advertising, signage and guidance, and help us measure our customer service. We go over once a month how we’re doing compared to our peer group. You can improve performance if you measure and reward for it.”

Adds Steve, “We’re honored to even be considered for the Beacon Award. It helps validate the hard work that everyone does.”

Grilling demos every weekend help attract customers.

Grills and grilling accessories comprise one of the largest niches.

Ace Hardware Corp. Congratulates its Two Beacon Award Winners

Ace Hardware of Clarkston—Best

New Store Under 20,000 sq. ft.

Owners: Jason and Melanie Haley

Proctor Ace Hardware—Retail Beacon Award

Owners: Steve, Joe and Lizz Proctor

Honoring the Best Retailers

(Top row l to r): Jeff Murray, Ace Hardware Corp.; Melanie and Jason Haley, Ace Hardware of Clarkston; Dave Atkins and Jerry McGowan, Ace Hardware Corp.

(Bottom row l to r): Tom Parman, Ace Hardware Corp.; Joe Proctor, Tommy Proctor, Leigh Proctor and Steve Proctor, Proctor Ace Hardware

Program

Award Retail Beacon

Gillman Home Centers Batesville, Ind.

IClick to Watch Gillman Home Centers’ Beacon Award Presentation Video

n 1962, Carl Gillman founded Gillman Brothers Lumber in Brookville, Ind., mainly to service his own construction company. His son, Charlie, worked alongside him in construction for years and was the only one of 10 kids interested in joining him in the lumber business.

It took Charlie nearly 20 years to open his own lumberyard, but today Gillman Home Centers operates 12 Do it Best stores in Indiana and southwestern Ohio.

Charlie Gillman’s retail strategy is to locate stores in smaller towns, carry a deep product selection, price aggressively and offer unmatched customer

Gillman Home Centers’ 12 Do it Best stores do not feature cookie-cutter assortments and strive to keep people shopping local.

service. He puts his cell number on his business card and encourages employees and customers to call him 24/7.

Charlie’s son Curtis serves as COO and runs day-to-day operations. His other son, Travis, is special projects manager and oversees tool rental and manages their fleet of 100 trucks, including a repair garage with three full-time mechanics.

The company has been on an acquisition kick, growing its store count 50 percent in the past year. New stores in Lebanon and Frankfort, Ind., were added on August 1st of this year. Gillman Home Centers held a grand opening for a new store in

Charlie Gillman has grown Gillman Home Centers into a 12-store home center chain by focusing on stores in small towns.

Eaton, Ohio, in October 2017. Aurora Lumber in Aurora, Ind., which dates back 150 years, was also acquired by Gillman last October, even though the location sits about 300 yards from a Lowe’s store.

“We’re like Depot in a small town, with a 17,000-square-foot store to serve a town of 2,500 people,” says Charlie. “Customers tell us all the time that your stores just have everything.”

Charlie says Do it Best Corp. has been instrumental in helping his business be successful through the years. “I like the fact that Do it Best is very responsive to our needs. If we want to bring in a certain product they listen to us. Their lumber department is huge for us.”

Gillman Home Centers held a grand opening for a new store in Eaton, Ohio, in October 2017.

Even though Gillman Home Centers has nearly 300 employees, they have very little turnover. “If you take care of your employees, they will take care of your customers,” Charlie says. “When I hire someone, I demand that they love coming to work. You’re either going to love working here, we’re going to fix it or you’re going to move on. I hire slow and fire fast.”

Charlie and his wife Donna host an annual summer party for employees in their backyard, with over 300 people attending. Charlie hires a band and there is a professional fireworks show. Then the next weekend they do the same thing for customers. “There is not a company that cares as much about its employees and is as passionate as we are,” Charlie says.

If you want your employees to go above and beyond for customers, it helps if you practice what you preach. Charlie shares the story of Donna’s old minivan that they were getting ready to sell. He decided to keep it and make it available so any employee can use it to take on a family vacation—free of

Charlie Gillman (left) has turned over dayto-day management of operations to his son Curtis (right).

charge. The minivan gets nearly nonstop use.

Charlie is an avid book reader, so he started a Book of the Month Club. “If anyone wants a copy of that month’s book we’ll give it to them for free,” Charlie says, noting that his HR person now has a library of 300 to 400 books for loan.

Gillman Home Centers sells building materials all over, including $70,000 of shingles to Florida. Other big categories are home decor, cabinets, flooring, paint and wholesale plumbing.

Charlie likes opening stores in small towns where other retailers are not doing what they are doing. “We bring people back to town,” he says. “Frankfort is a town of 16,000 people and we will be the only hardware or LBM store in town.”

The company gets 65 to 70 percent of its sales from pro customers. Three of the stores even sell mattresses, while 11 out of 12 have rental. “We don’t have cookie-cutter assortments but tailor our stores to the towns we’re in,” says Charlie.

Gillman Home Center’s sales have doubled over the past five to six years,

Left: Aurora Lumber in Aurora, Ind., which dates back 150 years, was acquired by Gillman last October.

Middle: Employees who love coming to work do a better job of taking care of customers, so the company strives to ensure the right people are in the right seats on the bus.

Right: Gillman Home Centers, which gets about two-thirds of sales from pros, sells everything needed for the home from lumber and cabinets to flooring and mattresses.

much of it organic growth. As Charlie likes to say, “In business as in life, do what you’re good at. All our stores are home centers offering everything needed to build a house.”

Although the home center chain remains focused on growth, Charlie and his management team also keep in mind that the goal is to be the best home center company they can be. “We don’t acquire stores just to say we have them. We only go in if we can do well,” Charlie says.

Although being honored with the Beacon Award is nice, Charlie says taking care of customers is the best award. As he explains, “If you work hard and treat people the way you’d want to be treated, then things have a way of working out.”

Do it Best Corp. Congratulates its Two Beacon Award Winners

Agricola Hardware & Lumber—Best New Store Under 20,000 sq. ft. Owners: Brenda & Elliott Massey

Gillman Home Centers—Retail Beacon Award Owner: Charlie Gillman

(Left to right): Charlie and Donna Gillman, Gillman Home Centers; Jason Hipskind, Do it Best Corp.; Ashlyn and Elliott Massey, Agricola Hardware & Lumber.

BEACON AWARDS: The Industry’s Awards Program

Retail Beacon Award

Diana and Danny Smith purchased Matt’s Building Materials in 2002 and have turned over many of the dayto-day responsibilities to their sons Isaac, Jeremy and Ben.

Matt’s Building Supply

San Benito, Tx.

In September 1967, Hurricane Beulah slammed into south Texas, causing massive flooding to homes. Shortly after, Valley Cash and Carry Building Materials stores opened in Pharr and San Benito, Texas, to help residents restore their damaged homes. In 1975, Ira Matt became owner and renamed the business Matt’s Cash & Carry Building Materials. Danny Smith was hired to help manage the two stores.

In 2002, Danny and his wife Diana Smith purchased the business. Today, Danny serves as CEO, Diana handles accounts payable and they get major help from their three sons: Ben, Isaac and Jeremy.

In the early days, Danny was instrumental in deciding that Matt’s should

Click to Watch Matt’s Building Supply’s Beacon Award Presentation Video

be the first local LBM store to cater to the Hispanic community, not liking the discrimination he saw toward Hispanic customers who didn’t have a lot of money. As son Isaac explains, “My father always taught us to treat everyone the same.”

Danny passed on this retail philosophy to his sons: “If we don’t earn the business, we don’t deserve the business. Do everything with integrity. Do it the right way. The only way to be successful is to please our customers.”

Isaac is responsible for purchasing most of the hardlines and flooring for all three stores and helps run the Pharr location.

Ben, the youngest son, serves as the general manager for their third store in Palmview, which opened new in 2015. The 25,000-square-foot store features modern fixtures, innovative merchandising with a nostalgic feel, and a fully staffed contractor counter. The front section is stocked with common contractor items for convenience. Sales for the new store have grown every month.

Isaac started working in the lumberyard at age 15, eventually taking on some purchasing duties. In 2012, he was named a Young Retailer of the Year by NRHA. He is now responsible for purchasing most of the hardlines and flooring for all three stores and helps run the Pharr location.

Jeremy, the oldest of the brothers, was working for a logistics company in Houston when his father asked him to return to the family business to revitalize the San Benito store. He is heavily

involved in commodities purchasing and has helped the San Benito store double in sales.

Danny rewarded two long-time employees for their dedication by inviting them to become co-owners in 2003. Luis Mancillas serves as the chief operating officer, while Oscar Sandoval is the chief financial officer.

The Pharr store is 74,000 square feet, which allows plenty of room to display dominant assortments of lumber, doors and windows. Matt’s dominates the local market for lumber, plywood, insulation, roofing, paint, water heaters, flooring, doors, windows and more.

In 2008, when the local housing market crashed and competitors saw sales decline 20 to 50 percent, Matt’s saw sales increase 3 percent.

Danny has always believed in giving back to their 180 employees. The generous incentive program even extends

Jeremy, the oldest son, returned to the family business to help revitalize the San Benito store.

Ben, the youngest son, serves as the general manager for their third store in Palmview, which opened new in 2015.

The Pharr store is 74,000 square feet and features dominant assortments of doors, windows, flooring and lumber.

Matt’s decided to offer special pricing to those affected, in some cases selling sheetrock at a loss. Isaac explains, “We had people raving about us on Facebook for that and every day we’re having families tell us how grateful they are. Our customers know we genuinely care.”

The Smith family offers a generous incentive program to all Matt’s employees, giving back 10 percent of company profits as a Christmas bonus.

Matt’s does a huge business in flooring.

to cashiers and lumber loaders, and at Christmas each year 10 percent of the company profits are given out as bonuses to employees. As Isaac says, “We offer incentives to encourage our employees to take care of customers, and our customers understand that we value them.”

Matt’s does a huge business in flooring, a category that has been in demand after bad flooding in June affected 25 percent of the homes in their trade area.

Orgill has been a great partner on the hardware side, according to Isaac. He says, “The programs they offer are right for our customers. Their market research, layout, signage and fixtures for the new store really fit our customer needs.”

Danny’s three sons grew up watching him work 60 to 70 hours a week, doing all the jobs they now share. They started from the ground up and did everything from loading trucks to cashier. Their father would not give them raises until they completed college.

Looking back now, Isaac says they didn’t realize their father’s overall goal until much later on—teaching them the value of hard work and effort. Now the three brothers who represent the next generation of leadership are better able to appreciate the contributions of every employee.

Isaac says they are very grateful to be nominated for the Beacon Award and to win such a prestigious national award. He says, “It means so much to be recognized and we’re very appreciative of it. Our family has been very blessed by the business, and that’s why we want to keep giving back to the community in whatever way we can.”

Award Winners

Parkrose Hardware—Best New Store Over

20,000 sq. ft.

Owner: Central Network Retail Group

Matt’s Building Supply—Retail Beacon Award

Owners: Danny, Diana, Ben, Isaac & Jeremy Smith; Oscar Sandoval, Luis Mancillas

(Left to right): John Sieggreen, Central Network Retail Group; Michael Nelson and Craig Loop, Parkrose Hardware; Myron Boswell, Orgill Inc.; Ramiro Armijo and Ben Smith, Matt’s Building Materials; Juan Pacheco, Orgill Inc.

BEACON AWARDS: The Industry’s Awards Program

Honoring the Best Retailers

Retail Beacon Award

Handyman True Value Hardware

Florissant, Mo.

In 1961, Ken and Kathleen Otto fulfilled a lifelong dream by purchasing Pine Lawn Hardware & Appliance in North St. Louis County. In 1967, they opened the first Handyman True Value Hardware in the nearby city of Florissant, providing hardware to a rapidly growing community.

Today, Ken and Kathleen’s sons, Dave and Glenn Otto, are continuing the legacy of service.

Handyman True Value Hardware now operates two stores in Florissant and a third location in Oakville, Mo. The stores average 32,000 square feet for the sales floor with an open layout that lets customers see the unique niches found in each store.

Click to Watch Handyman True Value Hardware’s Beacon Award Presentation Video

Dave Otto (left) and Glenn Otto are the second-generation owners of Handyman True Value Hardware, with three stores in Missouri.

Celebrating over 50 years in business, Handyman True Value remains familyowned and operated. Dave’s son Brian and daughter Christine represent the third generation of the family involved in the business, while his son-in-law, Jason Fank, manages the Oakville location that won the overall Best Hardware Store in Town award for all True Value stores this past year.

Dave and Glenn say the biggest retail lesson they learned from their father was work ethic. “I started filling shelves at 10 and saw his dedication to the business,” says Dave. “He would sweep

Handyman True Value’s three stores average 32,000 square feet of retail space.

floors so he could run into customers, rather than spend his time in the back office. He taught us the importance of being directly involved in the business.”

An expanded lawn and garden department features over 1,500 square feet of live goods, and lawn and garden generates 45 percent of sales. Patio furniture is another strong niche that has been expanded.

STIHL outdoor power equipment was added last year to the Telegraph Road store and has been well-received by pros and homeowners. Paint is the number two department with True Value and Benjamin Moore paint offered.

Wild bird is a great category for repeat sales for homeowners, while one store stocks lumber and building materials for pros and is able to feed LBM products to the other two stores.

Customers can pick up household cleaning products, or take advantage of installation services for kitchen remodeling, cabinets, countertops, decks, vanities, showers, water heaters, faucets, doors, ceiling fans and more.

Each of the three Handyman True Value stores has been honored as Best

and garden accounts for 45 percent of sales.

STIHL outdoor power equipment was added last year to the Telegraph Road store.

Wild bird is a niche category that drives footsteps.

Hardware Store in Town for True Value’s Kansas City regional distribution center. These stores all exemplify the roadmap to retail excellence and the six P’s: Product, Promotion, Place, Price, People and Performance.

The original store was 6,000 square feet but is now over 30,000 square feet after four additions. “We can offer more

Lawn

Two of the Handyman stores offer rental and they install everything from water heaters and faucets to kitchen cabinets and doors.

of a complete shopping experience now,” says Dave. “We have knowledgeable help on the sales floor and offer a number of categories with depth you can’t find at the box stores.”

Rental equipment and party goods rental have been offered in two stores for the past 10 years, helping boost repeat customer traffic.

With 160 employees all able to offer high levels of customer service, Handyman True Value is able to stand out in core categories like plumbing and electrical. “We can answer plumbing and locksmith questions, and know what faucets and stems are used in our area,” explains Dave. “We hire knowledgeable staff and make employee retention a priority.”

Having everything from building materials and housewares to automotive and holiday trim, Handyman True Value serves as a one-stop shop for customers. “We’ve been with True Value since the 1960s, and we have great allegiance to them,” says Dave. “Their product selection and monthly promotional specials have helped us drive footsteps.”

Paint is the number two category at Handyman True Value.

Having a strong price image starts with buying right, according to Dave. “We buy large quantities and we drive footsteps with ads that make us look competitive and gives customers the feeling they got a good deal with excellent service,” he adds.

Business has been steady so far in 2018, despite the presence of Lowe’s and Home Depot in their market.

Although it’s difficult to measure the impact of Amazon, Dave believes it has been minimal and points to their own increases in online orders that are picked up in the stores.

Handyman True Value contributes to schools and churches and makes a difference in lots of big and small ways. They have been active in the Chamber of Commerce for 35 years, have a float in the annual parade and Dave has served on the local hospital board for 15 years.

“It is gratifying to be honored with the Beacon Award for our performance,” says Dave. “Every day we’re honored that customers make us their number one destination and keep coming back for their hardware needs.”

From left to right: Tim Hanna, True Value Company; Dave Otto, Mary Otto, Michelle Fank, Jason Fank, Glenn Otto and Catherine Otto, Handyman True Value Hardware.

SUNNYSIDE CORPORATION IS A PROUD SPONSOR OF THE

2018 BEACON AWARDS

The year is 1893. Grover Cleveland is sworn in as the 24th president of the United States. Women are granted the right to vote in Colorado and Katharine Lee Bates writes the song “America the Beautiful.”

Also in 1893, Henry Lueders founded The Henry A.F. Lueders Oil Company on the north side of Chicago, distributing kerosene and other oils from a horsedrawn wagon.

Around 1912, Henry’s eldest son, Carl, joined the business. Together, they opened two filling stations, offering fuel, automotive parts and service to Chicago’s early cars and trucks. In 1921, the business continued to grow and incorporated in Illinois, under the name Sunnyside Oil Company.

From its humble beginnings in 1893, to the present, Sunnyside has remained family-owned and operated as the company celebrates a milestone achievement with its 125th anniversary in 2018.

Through four generations, Sunnyside’s core values have not

changed—always offer customers innovative, high-quality products combined with unmatched customer service.

In the early 1940’s, Sunnyside pioneered the packaging of solvents and chemicals into consumer-oriented containers. Those early containers reflected the yellow and black graphics theme that has evolved into the highly recognized Sunnyside packaging of today.

Today, under the leadership of Robert Lueders, the great-grandson of the company founder, Sunnyside continues to explore new markets, expand its customer base and introduce new innovative products.

Sunnyside products are available for sale in every state and are formulated to meet or exceed all current environmental regulations. This industry-leading company continues to improve and expand its manufacturing facility, with significant ongoing capital investment in automated equipment and high-speed filling lines.

In 1976, Sunnyside moved into a new, state-of-the-art manufacturing and

Sunnyside Corporation’s main manufacturing facility is in Wheeling, Ill.

turnaround, timely shipping, high levels of product quality, flexibility and urgency in addressing the needs of its customers are important to Sunnyside.

distribution facility, located in Wheeling Ill. Sunnyside also has a distribution center in Southern California, facilitating timely shipments throughout the western United States, Canada and Mexico.

Sunnyside carries a full line of thinners, solvents, paint removers, specialty cleaners, protective coatings and paint additives marketed under several brands including Sunnyside, ProSolutions, Green Envy, Back to Nature, M-1, Ready-Strip and 2-Minute Remover.

Sunnyside carries a full line of retail thinners, solvents, paint removers, cleaners and mildew treatments marketed under several brands including Sunnyside, ProSolutions, Green Envy, Back to Nature, M-1 and 2-Minute Remover. Sunnyside’s product lines, which are available for sale in every state, are positioned to meet or exceed environmental regulations across the country and customer needs.

“Innovative Products for Today and Tomorrow,” Sunnyside’s hallmark for over 120 years.

Sunnyside has been proudly serving the paint and hardware industry for 125 years and the company remains committed to selling high-quality products that are Made in America.

The company was founded by Henry Lueders in 1893.

LAWN & GARDEN TRENDS

Sales of Insecticides (Independent Hardware Channel) 12 Months % Change vs. Year Ago

Source: Vista Information Services, div. of Epicor Software Corp.

Unit Sales Breakdown for Insecticides

Total of 1,938 Items with Sales

LAWN & GARDEN BUYING UPDATE

The 2018 “What Gardeners Think” survey conducted by GardenResearch. com reveals important information about the types of gardeners in America, their attitudes and what motivates them.

There are strong indications that gardeners of all generations want how-tosucceed information, along with firsttime success in their home and garden projects. Consumers are researching online and looking for advice for a short project that fits their lifestyle. According to industry analyst Ian Baldwin, “Today’s consumer is hungry for gardening how-to. In-store classes are a sell-out and the 2018 National Gardening Survey shows a big uptick in households purchasing gardening information with millions of them acquiring gardening apps.” They want retailers to sell the exact specifics of what they need, while providing simple, quick, “how-to-succeed” information.

Weeds, insects and soil conditions top the list of challenges and while

Left: Customers at Ace Hardware Circle in Colorado Springs, Colo., get to look at the mountains as they shop for plants.

Right: Sullivan Hardware & Garden in Indianapolis has a green goods offering that rivals the selection of any nursery.

they have not changed since 2012, their importance to gardeners has increased. The main dislikes about gardening include “gardening takes too much work,” “costs too much money,” and “takes up too much time.”

The annual National Gardening Survey finds the proportion of older gardeners is holding steady (35%) but younger households reached an all-time high in gardening participation. Those between the ages of 18 and 34 now occupy 29% of all gardening households.

What is this young gardener buying? Knowledge. Rather than getting glossy, coffee-table books, many of these gardeners acquired gardening apps and information from gardening websites.

Overall, American gardeners reported spending a record $47.8 billion on lawn and garden retail sales in 2017, the highest ever, with a record average household spend of $503—up nearly $100 over the previous year.

Indoor gardening is also making a big comeback with 30% of all households buying at least one houseplant.

PP 80 HAND PRUNER

• The PP 80 hand pruner from STIHL is well-suited for larger hands and fingers.

• It features a high-quality steel, nonslip handle and quick-release blade lock with a 1” longer handle than previous models for comfort and improved grip and a cutting capacity of up to .80”.

• No more hand strain from awkward holds.

• Like the PP 70, its chrome-plated blades can be re-sharpened, even replaced, improving the lifespan of your hand pruners. STIHL

www.stihlusa.com 800-467-8445

DOUBLE MOBILE GREEN WALL

• A perfect fit for urban living, the mobile green wall is the perfect solution for urban gardening needs.

• Decorate your patio with a flower garden or create a mobile herb and veggies patch and enjoy produce fresh from your garden. The portability of this multi-level planter with a complete irrigation system makes it ideal for space-saving gardening.

• Portability of this garden lets you move it in the sun or shade or move it inside during harsh weather.

• Includes a metal mobile green wall double frame, herb and flower pot, vegetable and fruit pot, grow-your-own planter and pre-assembled irrigation system.

IN THE NEWS

NEW STORES:

Bloedorn Do it Best Lumber opened a new store in Douglas, Wyo. Stacy Duguay and Dave Nyentap have opened North Dundas Building Supplies in North Dundas, Ontario.

Kitz & Pfeil is rebranding its five stores in Wisconsin as Kitz & Pfeil

Ace Hardware.

Marsh Lumber in Clarksburg, W.Va., was purchased by Chuck Kersting and renamed Marsh Hardware and Builder Supply.

Busy Beaver opened a new store in New Castle, Pa.

Riverhead Building Supply, with 14 LBM stores, has acquired United Builders Supply, with four stores in Rhode Island and Connecticut.

The Grundy family has sold Grundy’s Ace of Howell in Howell, Mich., to Jim and Dianne Byrum, who operate four other Ace Hardware stores.

KUDOS TO:

Nebraska-based Millard Lumber is celebrating its 70th anniversary.

Intown Ace Hardware in Decatur, Ga., owned by Dave Jones, was named the 2018 Ace All-Star Retailer for fundraising and commitment to Children’s Miracle Network hospitals.

M.S. Osborne Ltd.-Montserrat, a Do it Best member in Plymouth, Montserrat, in the Caribbean, is

celebrating its 80th anniversary. 84 Lumber Co. has been named a top workplace in the Pittsburgh area by the Pittsburgh Post-Gazette.

415 PRO Hardware, Garden & Pet Supply in Pennsylvania, owned by Kurt Fetterman, was named the 2018 Paul L. Cosgrave Memorial Award winner by PRO Group.

PEOPLE ON THE MOVE:

Home Hardware Stores has appointed Kevin Macnab as president and CEO.

WHOLESALERS IN THE NEWS:

Ace Hardware Corp. reported second quarter 2018 revenues of $1.59 billion, up 6.4 percent from the prior year. Net income of $54.8 million for the quarter was up 7.2 percent. announced it will be expanding its distribution center in Kilgore, Texas. The company will almost double the size of the existing facility to nearly a million square feet. Construction is expected to begin in the third quarter, with completion by June 2019. “We’re pleased to be in a position to make another major enhancement of our distribution network,” says Ron Beal, Orgill chairman, president and CEO. “The growth we’ve experienced in Texas and the surrounding states has made the expansion a necessity.”

OTHER NEWS:

• MAC’s Inc., owner and operator of 14 hardware stores in Minnesota, North Dakota and South Dakota under the name Mac’s Hardware, has agreed to sell its business and operating assets to Central Network Retail Group (CNRG). Mac’s Hardware stores will continue to operate under their existing brand name. John Sieggreen, CNRG president, said CNRG is excited about the opportunity to expand into the upper Midwest.

• Stanley Black & Decker is buying a 20 percent stake in MTD Products for $234 million.

• The Hillman Group completes acquisition of Minute Key Holdings, which markets minuteKEY self-service key-cutting kiosks.

IN MEMORY:

• Harry Friedman, co-founder of Friedman Bros. Hardware, passed away September 21 at age 81.

Click here.

FOR THE FULL REPORT:

• Stanley Black & Decker relaunches Craftsman brand in new stores. Click here.

• Lowe’s to close all Orchard Supply Hardware stores. Click here.

• Businesses must meet new Prop 65 requirements in California. Click here.

• China tariffs impact everyone.

Click here.

ACE HARDWARE SHARES ROADMAP FOR WHOLESALE AND RETAIL SUCCESS

Ace Hardware Corp. held its Fall Convention in Chicago last month, with executives touting the co-op’s recent track record of growth while admitting some improvement has been needed on the logistics end.

More than 400 stores have joined Ace in the past seven years, 90 so far this year, and that has helped drive record wholesale sales six years in a row. Ace President and CEO John Venhuizen told attendees that Ace is committed to looking at quarter centuries, not quarters. “We will continue to invest in a digital transformation from mailers to mobile, and we will invest in the Supply Place B2B,” he said. “We’ve got to be faster than Amazon with the logistics revolution. We will invest in service, convenience and quality.”

Ace plans to launch a tool that will show members where their delivery truck is and when it will arrive. They have also developed an industry vendor report card to help improve vendor fill rates and speed product delivery. These initiatives, combined with an accelerated timeline of distribution center expansion, will improve the co-op’s logistics performance. “We will be your best wholesaler. We are throwing everything we have toward that,” Venhuizen said.

INDUSTRY SCRAMBLES TO RESPOND TO HURRICANE FLORENCE

Communities are still recovering from the damage caused by Hurricane Florence, which barreled into the Carolina coast as a Category 1 hurricane on September 14, forced the evacuation of more than 1 million people and has caused an estimated $44 billion in damage.

Florence caused massive flooding throughout the Carolinas, spawned 10 tornadoes in Virginia and has led to 43 deaths. Elizabethtown, N.C., got 35.9 inches of rain, and numerous rivers in the Carolinas spilled over their banks, forcing many road closures.

Ten days after the hurricane first touched land, many communities in the Carolinas were still without power, making it difficult for retailers to conduct business and stay in contact with suppliers.

What follows is a look at how hardware retailers have been affected by Florence and how the industry has responded.

• Village Do it Best Hardware in Oriental, N.C.—Store is right on the Pamlico Sound and experienced high winds combined with a high storm surge, which caused significant flooding. Do it Best was able to get an emergency truck delivery to Village before and after the storm. The delivery after the storm was delayed and rerouted several times due to road closures from flooding. Since they are the only hardware in the community,

Winnie Smith of Mitchell Hardware (second from left) donated a New Bern flag to Master Sgt. Josh Chandler and Sgt. Jim Alston of the North Carolina National Guard, who were among those deployed to help the New Bern area cope with massive flooding. The two plan to have the community sign the flag, then they will take it overseas on combat deployment next year and then bring it back and present to the town council when they return to the states.

they have been the source of supplies for everybody. Owner Cliff Bond said they did lose power but did not sustain damage to the store and were able to get back in soon after the storm.

• Walston Hardware in Cedar Point, N.C.—Set along the coast, the area got the brunt of the storm when it came ashore with the accompanying storm surge. Luckily, the store did not flood but did lose power and was closed for several days. Do it Best provided an emergency truck before the storm that helped them meet the needs of the community, plus a delivery truck after even though getting to Cedar Point proved challenging due to road closures.

• Calabash Ace Hardware in Calabash, N.C.—Managers Tom Roberts and Harold Cook told the Associated Press that employees

Click on this video link to see devastating flooding at Blevins Do it Best Building Supply in Galax, Va., a recently acquired unit of U.S. LBM's Parker Building Supply.

Lester’s Hardware in Kinston, N.C., unloads a truck full of generators.

were wrapping up five of the busiest days they have ever seen in their store.

Roberts says the store sold hundreds of gas cans and ran out of generators, but still had bottled water, sand bags and other items.

• Mitchell Hardware in New Bern, N.C.—Posted this on Facebook from Owners

Lindsay Sims and Winnie Smith: “Our precious town has suffered unimaginable damage, but New Bern is strong and we will rebuild together. Thanks to our amazing staff and friends, Mitchell’s is open.”

• Guy C. Wiggins Hardware in Richlands, N.C.—This store did get hit by the storm but didn’t sustain any damage. They have been the source of pre- and post-hurricane supplies for their community, taking deliveries before and after Florence. The store did lose power for some time and phone service

was sporadic, but Owners Mark and Aaron Tollefsrud maintained contact through cellphone and texts. Due to some road closures the second emergency truck was delayed a day, but they were incredibly appreciative of the effort Do it Best put into getting it to them.

• Riverside Hardware and Paint in New Bern, N.C.—Had 28 inches of water in their store, which has been serving the community since 1950.

Owner Randy Quidley said he lost 50 to 75 percent of his inventory and may not be able to reopen.

• McDonalds Lumber in Fayetteville, N.C.—Although they lost power and were closed over the weekend, the store did not flood and they have been able to continue serving their community. The Cape Fear River quadrupled in depth from 15 feet to 60 feet, so flooding was widespread in the area.

• Browns Builders Supply in Rose Hill, N.C.— While the store did not sustain damage, Rose Hill was hit hard with storms, flooding and widespread power outages. Do it Best was able to supply them with an emergency truck before the storm, which was greatly appreciated by the store’s owner, and when power came back on Tuesday after the storm, they were able to open the store. Do it Best’s Lexington, S.C., warehouse sent a fleet of additional trucks out ahead of the storm to ensure members were stocked and supplied. In total,

The plywood comes down after Mitchell Hardware survived Florence, but the community of New Bern remains devastated with flooding.

the co-op assisted more than 50 member stores, sending trucks loaded with supplies before the storm, as well as an additional series of emergency deliveries afterward to Virginia, North Carolina and South Carolina.

“It’s taken an incredible team effort— from everyone here in Lexington and our other regional warehouses, as well as our Fort Wayne headquarters—to support our store owners and ensure they’re helping their customers recover,” said Scott Smith, general manager of the Lexington distribution center. “We’re doing whatever we can to support the people of this region rebuild from the storm, and that certainly includes partnering with outstanding organizations like the Central South Carolina American Red Cross.”

Another help was the Federal Motor Carrier Safety Administration’s temporary easement of drivers’ service hours throughout the Mid-Atlantic and Southeast regions. Given Florence’s intensity and unpredictability, logistics were challenging in the days and hours before landfall. Several highways were “reversed” allowing the flow of traffic to move away from the coast, but it made moving delivery trucks to areas more difficult. Florence’s torrential rains made streets, roads and highways

impassable. Delivery truck drivers persevered by steering around closures, taking detours and getting creative in their navigation to stores.

Do it Best’s logistics team implemented their Business Continuity Plan (BCP) that included diverting 14 routes away from the Lexington warehouse so their team could focus on emergency response efforts—prepping and shipping hurricane survival essentials such as generators, water, batteries, flashlights, gas cans, sump pumps, extension cords and tarps.

House-Hasson Hardware had about 30 dealers directly affected by Florence, according to Regional Manager Bill Barnette. “Some had six inches of water in their store and others had two to three feet of water,” he said.

Barnette said Dillon Wood Works in Dillon, S.C., ended up with two feet of water in the store. “We helped get the store cleaned out and now the big thing is getting it dry so mold doesn’t take hold,” he added.

The whole team at House-Hasson worked before, during and after the storm to get generators, tarps, pumps and other much-needed supplies to their retail customers, Barnette pointed out. “Everyone has pitched in from the buying department and pickers in the warehouse to the truck drivers and our customer service department, doing whatever we can to help our customers,” he said.

Barnette noted two House-Hasson territory managers in the Carolinas who

Mitch Shealy and Jonathan Anderson from Do it Best’s Lexington, S.C., distribution center presented a $10,000 donation for hurricane relief to Kevin Coffey of the American Red Cross.

went above and beyond to aid dealers, since so many roads and major highways were closed. Sandy Shimer and Terry Taylor both met HouseHasson delivery truck drivers and led them along the back roads so they could reach dealers’ stores.

Ace Hardware is currently focused on helping its retailers along with the communities they serve recover as quickly as possible, which means ramping up deliveries to those stores to ensure they get the products and the supplies they need, said Jessica Rau, corporate media relations manager.

Ace worked around the clock to make more than 50 extra deliveries to the impacted region. There are over 400 stores that had potential to be impacted, with approximately 170 in the storm’s direct path. There were about 40 Ace

stores closed due to the storms when the hurricane made landfall, according to Rau. All stores were open, some with reduced hours of operation, within a few days. Power outages and flooding provided some challenges last week as Ace looked to make deliveries to certain areas, but the majority of trucks were able to get to the stores in need. Ace also deployed nearly 30 volunteers to help in the relief efforts.

“While everyone has seen the devastation on the news, what they may not see is the incredible community spirit. Ace continues to be amazed by the resilience and strength of our retailers and their communities—it is inspiring and why we are committed to doing what we can to help with the recovery efforts,” Rau said.

Those who want to support the relief efforts can donate at www.redcross.org.

DAN BECK JOINS THE HARDWARE CONNECTION

Dan Beck

Dan Beck has joined The Hardware Connection as national account manager. A graduate of SUNY Albany in Albany, N.Y., with a business degree, Beck spent 24 years at The Daily Gazette in Schenectady, N.Y., starting as an ad sales representative before being

promoted to marketing/co-op manager and advertising director. He was later promoted to general manager with responsibility for over 200 employees at the daily newspaper, serving in that role for eight years.

Beck volunteers with the Schenectady Boys and Girls Club and was a member of the Rotary Club and Chamber of Commerce there.

UPCOMING EVENTS

SEPTEMBER

True Value Fall Reunion

September 28-30, Colorado Convention Center, Denver

OCTOBER

China International Hardware Show

October 10-12, National Exhibition and Convention Center, Shanghai, China

Do it Best Corp. Fall Market

October 12-15, Indiana Convention Center, Indianapolis

Green Industry & Equipment Expo

October 17-19, Kentucky Exposition Center, Louisville, Ky.

House-Hasson Hardware Fall Dealer Market

October 25-27, Sevierville Event Center, Sevierville, Tenn.

LBM Advantage Fall Conference

October 31-November 2, Omni Atlanta Hotel at CNN Center, Atlanta

LMC Forest Products and Building Materials Expo

October 23-24, Philadelphia Marriott Downtown, Philadelphia

National Hardwood Lumber Association Convention

October 2-4, Sheraton Centre, Toronto, Ont.

STAFDA Convention

October 28-30, Phoenix Convention Center, Phoenix

Taiwan Hardware Show

October 17-19, Taichung International Exhibition Center, Taichung, Taiwan

Wallace Hardware Company Fall Dealer Market

October 10-12, LeConte Center, Pigeon Forge, Tenn.

West Coast Lumber & Building Material Association Annual Convention

October 23-25, Westin Carlsbad Resort, Carlsbad, Calif.

NOVEMBER

Distribution America/PRO Group Executive Planning Conference

November 14-16, JW Marriott Starr Pass Resort, Tucson, Ariz.

NAWLA Traders Market

November 7-9, Chicago

Western Building Material Association Annual Convention

November 6-8, Tulatip Resort, Marysville, Wash.

JANUARY 2019

House-Hasson Hardware Winter Dealer Market

January 10-12, Opryland Convention Center, Nashville, Tenn.

United Hardware Spring Buying Market

January 11-13, Minneapolis Convention Center, Minneapolis

For a complete listing of calendar dates, click here.

25%

NUMBERS BEHIND THE

70%

Percentage of hiring managers who say they have successfully hired someone found via social media.

Percentage of small business owners who cited the difficulty of finding qualified workers as the single most important business problem, according to the National Federation of Independent Business August 2018 Report.

40%

Percentage of employees who say they plan on changing jobs in 2018, according to CareerBuilder.

55%

Percentage of job seekers who abandon job applications after reading negative reviews of the company online.

16%

Percentage of submitted job applications that come via a mobile device, according to PageUp research.

$20,340

Average annual wage for the 2.7 million retail cashiers in the U.S., which works out to $9.78 per hour, according to the Bureau of Labor Statistics.